Kimlun Corporation Berhad Annual Report 2017

Kimlun Corporation Berhad 108 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2017 (cont’d) 30. Other reserves (cont’d) (a) Foreign currency translation reserve The foreign currency translation reserve represents exchange differences arising from the translation of the financial statements of foreign operation whose functional currency is different from that of the Group’s presentation currency. (b) Warrants reserve A total of 60,112,500 free warrants (‘’Warrants 2014/2024’’) was issued by the Company on 13 March 2014. Each warrant entitles the holder to subscribe for 1 new share at the exercise price of RM1.68 per share at any time during the exercise period. The warrants have an exercise period of 10 years commencing 13 March 2014 and expiring on 12 March 2024. As at 31 December 2017, 59,057,300 Warrants 2014/2024 remained unexercised. 31. Related party disclosures In addition to the related party information disclosed elsewhere in the financial statements, the following significant transactions between the Group and related parties took place at terms agreed between the parties during the financial year : Group Company 2017 2016 2017 2016 RM RM RM RM Purchase of raw materials from a company related to certain directors 387,136 10,301,316 - - Contract fee receivable from a company related to certain directors 11,368,667 2,475,771 - - Contract fee receivable from joint ventures 142,173,543 20,862,126 - - Rental of land and building paid to companies related to certain directors 2,046,911 1,422,081 - - Rental of premise paid to a company related to certain directors 13,893 25,321 - - Interest income received from a joint venture - 279,795 - - Landscaping and maintenance service paid to a company related to certain directors 267,153 247,299 - - Interest income received from subsidiaries - - 1,862,157 2,170,454 Dividend income received from subsidiaries - - 19,234,000 12,882,000 Companies related to certain directors These entities are subject to the same source of influence as the Company through common directors. Compensation of key management personnel The remuneration of key management personnel during the year are as follow: 2017 2016 RM RM Salaries, bonus and other emoluments 5,479,130 6,197,447 Defined contribution plan 947,555 1,090,647 Other short term benefits 108,894 108,974 6,535,579 7,397,068